Record net short positions in silver since 2009 - per CFTC Report

Chicago (Dec 10)  For the first time since June 18, managed-money accounts turned net-short silver in the disaggregated report. They are net short 5,386, which is their largest net-short position since the report started in September 2009. They cut 1,221 gross longs and added 4,875 gross shorts to flip their orientation.  Producers lowered their net-short position by reducing exposure on both sides, and by cutting more gross shorts than longs. Swap dealers added to their net-long position by adding more gross longs than gross shorts.

In the legacy report, the silver net-long for non-commercials was cut nearly in half from the previous week’s level as these traders added more gross shorts, 5,157 contracts, than gross longs, 1,138 contracts, to lower the net-long 4,293 contracts, the smallest since June 4. Commercials are net-short, but saw a swift drop in that position as they cut gross shorts and added gross longs.

Managed-money accounts in platinum decreased their net-long position for the fourth week in a row, to 16,249 contracts, having cut 76 gross longs and added 3,214 gross shorts.  Non-commercials in platinum also decreased their net-long position, but for the third straight week. It now is 23,460 contracts, having added 151 gross longs and added 3,595 gross shorts.

“Platinum spec (speculative) longs continue to hold steady, but those with a short-bias continue to build up positions, as above-ground inventory concern spars with the longer-term supply/demand deficits picture,” said TD Securities.

In palladium the managed-money accounts cut their net-long position to 20,658 contracts, the fourth consecutive drop. They cut 512 gross longs and added 98 gross shorts. In the legacy report, non-commercials cut 588 gross longs and 31 gross shorts, lowering their net-long to 21,909 contracts, the third week in a row to see a fall in the net-long.